MNRE Blacklists Pragat Akshay Urja Limited Over Solar Park Fraud And Fund Misuse

The Ministry of New and Renewable Energy (MNRE) granted in-principle approval on September 29, 2015, to Pragat Akshay Urja Limited for setting up a 500 MW solar park in Sakri, Dhule district, Maharashtra. The project was later transferred to a special-purpose vehicle named Sai Guru Mega Solar Park Pvt. Ltd, created by Pragat Akshay Urja Limited through the Maharashtra Energy Development Agency (MEDA). Despite claiming land acquisition for the solar park, the company failed to provide proof, raising concerns about misleading and fraudulent behavior.

A team from MNRE, Solar Energy Corporation of India (SECI), and MEDA visited the site on December 20, 2018, to assess progress. They found no site office or physical development, indicating that Sai Guru Mega Solar Park Pvt. Ltd had not taken any steps to execute the project. Consequently, MNRE instructed SECI to recover the ₹4.10 crore Central Financial Assistance (CFA) disbursed to the company, with interest. Sai Guru Mega Solar Park Pvt. Ltd refunded only ₹2,17,92,052, leaving a significant balance unpaid.

Following a Delhi High Court order on April 2, 2020, MNRE issued a demand notice on June 17, 2020, for the remaining balance along with accrued interest. However, even after four years, Sai Guru Mega Solar Park Pvt. Ltd has failed to repay the full amount. Investigation revealed that 93% of Sai Guru Mega Solar Park Pvt. Ltd’s shares are owned by Pragat Akshay Urja Limited, with Satish Jain and Bhavesh Jain holding 3% and 4% shares, respectively. Both individuals are also promoters of Pragat Akshay Urja Limited, establishing its primary responsibility for Sai Guru Mega Solar Park Pvt. Ltd’s obligations.

The findings indicate that neither Sai Guru Mega Solar Park Pvt. Ltd nor its parent company, Pragat Akshay Urja Limited, intended to develop the solar park despite receiving CFA and accruing interest on the funds since December 2016. Their failure to initiate the project and evasion of refunding the balance amount highlight clear attempts to cheat and embezzle government funds.

As a result, Pragat Akshay Urja Limited, being directly responsible for Sai Guru Mega Solar Park Pvt. Ltd’s actions have been blacklisted. The company is debarred from entering contracts with the Government of India, state governments, or any other government entities until the outstanding CFA amount, along with accrued interest, is refunded to MNRE. This blacklisting order was issued with the approval of the competent authority, marking a strict measure against fraudulent practices in government-backed renewable energy projects.